Infosys Q4 profit rises 30% to Rs 7,975 crore, revenue misses expectations

Infosys Q4 results: Infosys experienced a fourth-quarter revenue shortfall, falling below market expectations during a traditionally slower period for the second-largest Information Technology (IT) services provider in the country. The company's revenue growth for the January-March quarter stood at 1.3 per cent, reaching Rs 37,293 crore, notably lower than the anticipated Rs 38,640 crore, according to LSEG data.

The cautious approach of clients, who reduced spending amidst macroeconomic uncertainties, contributed to this performance. Infosys has forecasted a modest revenue growth between 1 per cent and 3 per cent in constant currency for fiscal year 2025.

India's IT sector, valued at $254 billion, has encountered challenges in recent quarters due to reduced client spending on non-essential projects amid inflationary pressures. 

Consequently, companies in the industry have had to navigate tougher contract terms to secure major deals, while contending with clients renegotiating, delaying, or canceling contracts. This has resulted in a notable deceleration in growth compared to the pandemic-induced surge witnessed a few years ago.

Despite the revenue setback, Infosys saw its consolidated profit rise by 30 per cent to Rs 79.75 crores. Tata Consultancy Services (TCS.NS), India's leading IT services provider, similarly reported lower-than-expected fourth-quarter revenue last week, citing weak spending trends, particularly in its largest vertical and primary market.

(With Reuters inputs)